I am a newbie to purchasing pm options. And to be honest, I've read some books sometime back but I still have a hard time at the basics. And I need some advise related to my September and DEcember Silver bull call spreads. The brokers are just too busy to sit and explain. All my picks were from a very popular newsletter writer and his track record is very good. And some were from my brokers newsletter. I am going to switch brokers to work with the person that supports this newsletters picks.
I have the following
Silver September 47-48
Silver September 80-86 (yes, I know)
I had purchased 4 December 49-50's
I then purchased 4 December 50-51
Then they became 8 December 49-51's. My broker told me after the fact that you can't go long and short.
Ok, September TOAST. Everything expires 8/25. Back in April or May when Silver was off the map and everyone was euphoric a newsletter writer suggested the 80-86 only as a long shot and not to bet the bank. I didn't and only bought one. I don't mind losing playing a long shot and there's nothing I can do.
Two weeks ago my broker called me up and said we can roll the September 47-48's to December cheaply. He put in the bid but it never filled. Now it's really expensive like 1500 or something. What I didn't know is that the 47's/48's are almost worthless and you can't really sell them because nobody is gonna buy. That's basically what he told me or how I understand it.
Ok, so I lose but I don't want to make the same mistakes for my December and wait too long that they become worthless if the options never go in the money. Like everyone I am optimistic that silver will reach 50 by years end but I am not willing to bet the bank. I want to take some, if not all off the table soon.
Let's say that come October/November, they are not yet in the money, maybe silver is at 45, when does it become too late for me to try to sell them because nobody wants to buy the contract?
Approximately what are they worth. Average price 49 is 100.75. Average price 51 is 340. Opening trade equity for 49 is 22,154. Opening trade equity is -17,010.
I realize that I have to go back and read my books to refresh and that's my responsibility. In the meantime, before I call my broker and he speaks gibberish to me and puts me on hold 10 times, i'd appreciate if you could tell me what you would do with the Decembers 49-51's if they were yours.